Topic: What is Escrow payment ? - page 2. (Read 1131 times)
An intermediary person who holds the funds of buyer and seller. Just transfers the product and fund to the respective person on receiving a small charge. This is for enhancing trust of the service.
I would like to get information about it . What is it ?
It's basically for a buyer and seller to do business with minimal risks.
It's pretty simple, both buyer and seller (or business partners) agree that they don't fully trust eachother, but they do trust a thirth party.
When they sell an item, the buyer doesn't pay the seller, he pays the independant thirth party.
The thirth party now confirms he has the full payment in his posession to the seller. The seller now sends the goods to the buyer.
Once the buyer confirms he received the goods, the escrow now releases the payment to the seller.
This way, it's impossible for the buyer not to pay for the goods, since the payment has to reach the escrow before the seller even ships the item.
The buyer is also more secure, since if he payed the escrow, and the buyer doesn't send the item, he won't get payed. In case something goes wrong, there is also an independant thirth party to look over any evidence. Since this thirth party is also the person holding the funds, he can actually make a binding decission and either refund the buyer, or release the funds to the seller.
I would like to get information about it . What is it ?
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